The Trump administration is lowering tariffs on farm equipment and offering reduced duties to foreign manufacturers that build with American metal.
In a proclamation Monday, President Donald Trump lowered 25% U.S. tariffs on combines, tractors, harvesters, mowers, plows and other types of machinery to 15%.
Trump also lowered tariff rates from 25% to 15% for mobile industrial equipment including bulldozers and forklifts from Japan, South Korea, the United Kingdom, European Union member nations, and several other "trade deal countries," according to the proclamation and a White House fact sheet on it.
In addition, the proclamation allows foreign companies to qualify for a lower, 10% duty rate if machines are built with at least 85% American-made steel or aluminum.
The changes take effect June 8 and will last until the end of 2027, according to the proclamation.
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Association of Equipment Manufacturers Senior Vice President of Government and Industry Relations Kip Eideberg applauded the action in a statement, saying it "represents an important step towards lowering input costs, strengthening supply chains, and supporting American farmers and manufacturers."
"This proclamation is an encouraging sign that the Trump administration recognizes both the complexity of reshoring production and the need to provide manufacturers with the runway to expand domestic capacity," Eideberg said.
In a statement, American Soybean Association President Scott Metzger also welcomed the announcement.
“Lowering costs on critical equipment and parts is a positive step for soybean farmers and all of agriculture at a time when producers continue to face significant financial pressure from rising input costs and tight margins,” Metzger said.
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Editors' note: This story has been updated with additional reaction.
